Analysis and Recommendations: Gold gained $3.90 to 1116.60 as traders seem uncertain about the Fed and continue to look at Chinese moves to control their
Gold gained $3.90 to 1116.60 as traders seem uncertain about the Fed and continue to look at Chinese moves to control their currency and the fall in equities. Silver added 17 points to 15.23 and Platinum added $2.35 to 996.35. Gold edged higher on Monday as concerns persisted over a weaker yuan after China devalued its currency last week, with the uncertainty likely to burnish bullion’s safe-haven appeal.
The weaker yuan could still prompt the U.S. Federal Reserve not to raise interest rates as soon as next month, as many had expected previously, despite continued signals of a strengthening U.S. economy.
Minutes from the Fed’s July 28-29 meeting due on Wednesday will offer vital clues about its plan to hike rates for the first time since 2006. Rebounding retail sales, solid jobs growth and rising construction all point to next month as gross domestic product stays above trend for the world’s largest economy.
Mizuho Bank senior economist Vishnu Varathan said the Fed minutes may “re-sensitize markets to U.S. data and solid prints may ignite firmer U.S. dollar and knock-on softer yuan fix.” A stronger dollar could weigh on gold.
China’s gold reserves rose to 53.93 million ounces by the end of July, up from 53.32 million at end-June, the central bank said. The data was released following a June adjustment that was the first in more than six years. China’s gold demand this year is expected to at least hold steady with last year at just under 1,000 tonnes, the World Gold Council said.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
|
Event |
Actual |
Forecast |
Previous |
||
JPY |
GDP (QoQ) (Q2) |
-0.4% |
-0.5% |
1.1% |
|||
JPY |
GDP (YoY) (Q2) |
-1.6% |
-1.9% |
4.5% |
|||
EUR |
Trade Balance (Jun) |
26.4B |
|
18.8B |
|
||
USD |
NY Empire State Manufacturing Index |
|
5.00 |
3.86 |
|
||
CAD |
Foreign Securities Purchases (Jun) |
|
|
-5.45B |
Upcoming Economic Events that you should be monitoring:
Tuesday, August 18, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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AUD |
Monetary Policy Meeting Minutes |
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GBP |
CPI (YoY) (Jul) |
|
|
|
|
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USD |
Building Permits (Jul) |
|
1.232M |
1.337M |
Government Bond Auctions
Date Time Country
Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz
Aug 19 11:03 Sweden Holds bond auction
Aug 20 10:30 Spain Auctions Bonos/Obligaciones
Aug 20 11:30 UK Auctions 4.25% 2036 Gilt
Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug